Apollo Global Management, one of the world’s largest investment groups, is in talks to provide hundreds of millions of pounds of funding as Stanlo oil refinery owners are trying to overcome financial difficulties.
Sky News learned that Apollo has been discussing with Essar Oil UK for several weeks on building deals, including occupying an important position in the company’s capital structure.
Any transaction could involve providing the company with about £ 400 million in new funding.
A person near Apollo said the New York-listed company is one of several parties negotiating with India-owned Essar Oil UK, and the deal is uncertain.
Among the obstacles to signing a contract with the owner of the second largest oil refinery in the UK are the resignation of two legal counsel and corporate governance that prompted the termination of a loan facility with Lloyds Banking Group. They added that there were related concerns. ..
According to insiders, some of the new funds secured by Stanlow’s parents will be allocated to repay at least part of the large unpaid invoices payable to HM Revenue and Customs.
The identities of other future funders were unclear on Thursday.
Apollo’s involvement in this process is logical given that it is often involved in the financing situation of complex companies.
Before withdrawing from the debate, we had a detailed discussion about the deal to buy assets from the collapsed supply chain financial group Greensil Capital.
Recently, Sky News revealed details of the crisis at Essar Oil UK, raising concerns about its future to Whitehall officials.
The Stanlow Refinery is responsible for supplying one-sixth of the UK’s transportation fuel, including the pipeline from Stanlow to Manchester Airport, and plays an important role in the UK’s industrial economy.
Dissatisfaction with the operation of Essar Oil UK, as well as the resignation of a professional advisor, caused the resignation of two CEOs within a year.
Essar Oil UK purchased the Ellesmere Port Stanlow Refinery from Shell in 2011.
According to the Essar Oil UK website, the site employs more than 900 people directly, plus 800 onsite contractors and 5,000 working indirectly within the extended value chain.
According to sources close to Essar Oil UK, the COVID-19 pandemic pushed down margins and affected demand for its products along with other refining operations around the world.
Stanlow is now aware of the growing demand for fuel for road transport, and the company remains committed to a sustainable future, supporting the UK’s decarbonization agenda, sources said.
An Essar spokesman said: “We are in constructive discussions with multiple financial providers and are confident that we can implement the best financing solution for our company.
“At this stage, we are not ready to comment on a particular name.”
An Apollo spokesman declined to comment.
Apollo discussing with Stanlow refinery owners in a dash for cash | Business News
Source link Apollo discussing with Stanlow refinery owners in a dash for cash | Business News